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Indiana Life License Exam with 100% Verified Questions and Answers Grade A+ Latest Update 2024.
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Indiana Life License Exam with 100- Verified Questions and Answers Grade A+ Latest Update 2024.
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Indiana Life License Exam with 100% VerifiedQuestions and Answers Grade A+ Latest Update
2024
Life .Insurnace .- .(correct .answer) .-Protects .against .loss
Risk .- .(correct .answer) .-Is .the .possibility .that .a .loss .may .occur
Pure .Risk .- .(correct .answer) .-Has .a .chance .of .loss .only
Speculative .Risk .- .(correct .answer) .-Has .a .chance .of .loss .or .gain .(gambling)
Sharing .(Risk) .- .(correct .answer) .-Sharing .potential .loss .with .someone
Transfer .(Risk) .- .(correct .answer) .-Transfer .the .risk .to .another .party, .(insurance .company)
Avoidance .(Risk) .- .(correct .answer) .-Stay .away .from .a .risky .situation .or .action .(no .sky .diving)
Reduction .(Risk) .- .(correct .answer) .-Live .a .healthy .life .style .to .reduce .risk .(wear .your .seat .belt)
Retention .(Risk) .- .(correct .answer) .-Be .self-
insured .or .set .up .a .savings .fund .to .offset .the .cost .of .potential .loss
Transferring .risk .is .- .(correct .answer) .-a .basic .principle .of .insurance
To .be .insurable .you .must .have .(5 .things) .- .(correct .answer) .-
1. .Must .be .a .large .number .of .similar .risks .to .pool .and .share
2. .Must .be .measurable .(a .definite .value .must .be .placed .on .the .loss
3. .Must .be .uncertain .(loss .due .to .chance)
4. .Must .cause .economic .hardship .(the .loss .must .be .significant)
5. .Cannot .be .catastrophic .(the .loss .cannot .be .too .great .to .insure .against)
,Loss .- .(correct .answer) .-A .reduction .in .the .quantity .or .value .of .something
Peril .- .(correct .answer) .-The .immediate .event .causing .a .loss .(fire .and .death)
Hazard .- .(correct .answer) .-The .factor .that .gives .rise .to .a .peril
The .law .of .large .numbers .- .(correct .answer) .-
The .larger .the .number .of .similar .risks, .the .more .accurate .the .prediction .of .future .loss. .This .is .impor
tant .because .insurance .rates .and .premiums .are .based .on .these .numbers.
Insurers .- .(correct .answer) .-
Are .companies .that .sell .insurance. .They .may .be .private .or .Government. .There .are .several .types .but
.the .most .common .are .Stock .and .Mutual .Insurers
Stock .Insurers .(Companies) .- .(correct .answer) .-Are .made .up .of .stock .holders .who .have .shares .in .the
.company .and .receive .dividends .based .on .company .profits. .The .dividends .received .from .stock .insure
rs .ARE .taxable
Mutual .Insurers .(Companies) .- .(correct .answer) .-Are .owned .by .policy-holders .and .dividends .received
.from .mutual .insurers .are .based .on .a .return .of .excess .premium .and .are .therefore .NOT .taxable
Place .of .Origin .- .(correct .answer) .-
Insurers .are .also .classified .by .their .place .of .origin .which .means .where .they .conduct .business.
Domestic .Insurer .- .(correct .answer) .-Chartered .or .incorporated .within .the .state
Foreign .Insurer .- .(correct .answer) .-Chartered .in .another .state, .US .territory, .or .District .of .Columbia
Alien .Insurer .- .(correct .answer) .-Chartered .outside .of .the .US, .US .Territories, .or .District .of .Columbia
Producers .or .agents .are .- .(correct .answer) .-
Individuals .who .solicit .applications .for .life .insurance. .They .represent .the .insurer.
Expressed .Authoirty .- .(correct .answer) .-Written .in .the .producer's .contract .what .they .can .and .cannot
.do
Implied .Authority .- .(correct .answer) .-Not .written .in .the .producer's .contract .but .granted .to .do .actual
.business .(collecting .initial .premium)
Apparent .Authority .- .(correct .answer) .-Perceived .by .the .public .as .a .result .of .the .producer's .actions
Legal .Contracts .- .(correct .answer) .-
A .contract .is .a .legally .binding .agreement .between .two .or .more .legally .competent .parties .to .form .a .
valid .contract.
Agreement .(Offer .and .Acceptance) .- .(correct .answer) .-
An .offer, .followed .by .an .acceptance. .The .application .and .initial .premium, .if .collected .from .the .prop
, osed .insured .is .the .offer, .and .the .insurance .company .approving .the .application .and .issuing .a .policy .
is .the .acceptance.
Consideration .- .(correct .answer) .-
The .exchange .of .something .of .value .for .a .service .for .a .service, .such .as .the .exchange .of .premiums .f
or .insurance .coverage.
Competent .Parties .- .(correct .answer) .-
Have .legal .capacity .to .enter .into .a .contract. .Parties .to .a .contract .must .be .legal .age, .sane, .sober .of .
sound .mind.
Legal .Purposes .- .(correct .answer) .-The .purpose .of .an .insurance .contract .must .be .legal
Warranties .- .(correct .answer) .-A .statement .guaranteed .to .be .true .(the .absolute .truth)
Representations .- .(correct .answer) .-A .statement .believed .to .be .true .to .the .best .of .one's .knowledge
Mis-Representation .- .(correct .answer) .-False .Statement
Concealment .- .(correct .answer) .-Failure .to .disclose .a .known .fact
Fraud .- .(correct .answer) .-Intentional .act .designed .to .deceive .and .induce .(a .lie .for .financial .gain)
Waiver .- .(correct .answer) .-To .intentionally .give .up .a .known .right
Reasons .to .buy .Life .Insurance .- .(correct .answer) .-
It .creates .immediate .estate, .upon .the .death .of .the .insured
It .can .pay .for .doctor's .bills .and .funeral .costs
It .can .pay .for .estate .taxes .or .pay .off .debts
It .can .also .pay .for .education .and .help .with .retirement .needs .for .the .spouse
The .Steps .to .issuing .a .policy .are .- .(correct .answer) .-Sales .Presentations
Taking .the .application
Under-writing .the .risk
Accepting .or .declining .the .risk
Issuing .and .delivering .the .policy
Three .Parts .to .the .Application .- .(correct .answer) .-General .Information
The .medical .Information
Agent's .report
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